An Introduction to Asset Allocation

by on in Guest Posts, Investing

This is a guest post from Jarrad – the editor of the Kyoto JET blog, Ganbatte Times. Jarrad got started with his finances about a year ago and agreed to share his thoughts about asset allocation for the FF readers. This post is a little advanced, but introduces some financial information that you’ll start thinking about as you your cash reserves grow.

Asset allocation is perhaps the single most important investment decision that you will need to make. Fortunately, you only need to make the decision once and then ride it out for the next 30+ years. In fact, changing your asset allocation is far more likely to be harmful than helpful.

So, why is asset allocation important? Generally, when you increase your risk, you also increase your potential for return. That is, if you want to make a higher return, you have to take greater risks. However, if done right, proper asset allocation can achieve both greater return and reduced risk.

When I initially started investing, deciding on my asset allocation was by far the most challenging decision I had to make. In its simplest form, it consists of simply making the decision about how many of your investment dollars will go to bonds and how many to stocks. However, the advice on even that relatively simple decision varies greatly.
(more…)

Read full story • Comments { 3 }

The FF Podcast Ep. 9: Beginning Investing with Adam from Magical Penny

by on in Investing, Podcast

On this week’s episode of The Foreigner’s Finances Podcast I talk with one of the few British personal finance bloggers, Adam from MagicalPenny.com.

Adam’s been writing about money for about 6 months. During the podcast we talked about investing as a 20-somethings and the differences between money in the U.S. and the UK.

You can subscribe to the podcast’s RSS feed or download and subscribe on iTunes to get every episode delivered to you.

Play

Podcast: Play in new window | Download

(more…)

Read full story • Comments { 0 }

How to Get Your Credit Report

by on in Credit Cards, Debt, Money

In January I wrote about the specifics of your credit score. Quickly, your credit score is a number between 300 and 850 that tells lenders how trustworthy you are for a loan. The better your credit is, the higher the score. Credit scores cost around $15 to get.

Your credit score is based off your credit report. It’s a huge report card that shows any loans, credit cards, or mortgages you’ve had and how trusty you were with the loan – aka did you pay the loan.

Legally, you’re allowed to get a free copy of your credit report from each of the three main credit bureaus - Experian, TransUnion, and Equifax – once a year. This means you can get them all at one time, or you can spread them out over the course of a year.

Today, I’m going to show you the process as I check my credit report so you can feel comfortable getting your own report. On Wednesday, I’ll do the same for my credit score.
(more…)

Read full story • Comments { 6 }

The FF Podcast Ep. 8: Retirement Savings with PT from PT Money

by on in Investing, Podcast

On this week’s episode of The Foreigner’s Finances Podcast I talk with one of the few full-time personal finance bloggers, PT, from PTMoney.com.

PT recently wrote a post for U.S. News and Yahoo! called the 5 Reasons Your Are Not Saving Enough for Retirement.

During our conversation we talk about this article and how you can properly prepare yourself for retirement in your 20s and 30s to make your life financially easier down the road. PT also tells us about PT Money’s transformation to a full-time blog and explains what it means to be a marathon completer.

Remember, you can subscribe to the podcast’s RSS feed or download and subscribe on iTunes to get every episode delivered to you.

Play

Podcast: Play in new window | Download

(more…)

Read full story • Comments { 4 }

Why Do Savings Accounts Only Allow 6 Withdrawals Per Statement Cycle?

by on in Banking, Savings

Did you know your savings account has a limit on the amount of withdrawals you can make in a statement cycle (usually 4 weeks)?

This often hidden fact can be a surprise to some when they reach their 7th withdrawal in a month and get dinged with a $10 fee and a tisk-tisk e-mail from their bank.

So what’s the deal with this restriction? What do banks gain and what exactly is considered a withdrawal?
(more…)

Read full story • Comments { 0 }

How Does Ally Bank Make Money?

by on in Banking

Banks often get a lot of crap for poor judgment, a lack of customer service, and thoughtless business moves but we often forget that a majority of people use banks for free.

There is no fee for a majority of the checking and savings accounts out there. These banks host our money, insure it up to $250,000, and provide their employees and services with no charge.

So how do big banks make money?

Well, they offer other money-making services like auto loans and mortgages. They also take your savings and invest it elsewhere (more on this later). And credit cards are also a way for banks to make money off you – when you don’t pay off your balance on your bank’s credit card, the extra interest you pay goes in to the banks pocket.

The big banks have a lot of different income streams and although some recent government legislation is threatening some of the less moral money-making practices, big banks are doing all right.

But what about the smaller online banks that don’t have 49 different income streams? How do they make money?
(more…)

Read full story • Comments { 3 }

The FF Podcast Ep. 7: Money Tips for 20-Somethings with MD from Studenomics

by on in Podcast

On this week’s episode of The Foreigner’s Finances Podcast I talk with one of my favorite personal finance bloggers, MD from Studenomics.com.

MD writes about money for college students and twenty-somethings and because we’re both under-25 personal finance bloggers we discussed how young professionals can take their money by the horns instead of letting money control you.

From how to spend money, to the best places to cut expenses, we cover the gambit of personal finance for the under 30 audience.

You can subscribe to the podcast’s RSS feed or download and subscribe on iTunes to get every episode delivered to you.

Play

Podcast: Play in new window | Download

(more…)

Read full story • Comments { 3 }

The 401(k) Beginner’s Manual

by on in Investing

401(k) seems like a scary grown-up word that only stuffy businesspeople who work 65 hours a week and read The Wall Street Journal care about. In reality, there’s a very good chance your eligible to enroll in a 401(k) through your company and they may even offer you free money for investing.

Intrigued? You should be – we’re talking about free money here!

Let’s take a beginner’s look at the 401(k) and see how it can benefit you and your money over the next 50 years.
(more…)

Read full story • Comments { 7 }
Older Entries »